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Country of Origin Labeling (C.O.O.L.): How cool is it?

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  • Dinopoulos, Elias
  • Livanis, Grigorios
  • West, Carol

Abstract

This paper develops a partial-equilibrium model of a small open-economy trading an unsafe product. The model is used to analyze the welfare effects of trade with and without a country-of-origin labeling (COOL) program. The welfare gains from trade in the absence of COOL are ambiguous, may justify the imposition of a trade ban. Even if a full ban does not improve welfare and some restriction of trade is always welfare-enhancing. Under a tariff regime, more COOL trade is better than less trade. Independently of domestic market power, free trade coupled with a COOL program maximizes national welfare.

Suggested Citation

  • Dinopoulos, Elias & Livanis, Grigorios & West, Carol, 2010. "Country of Origin Labeling (C.O.O.L.): How cool is it?," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 575-589, October.
    • Handle: RePEc:eee:reveco:v:19:y:2010:i:4:p:575-589
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    3. Osei, Yeboah & Cephas, Naanwaab & Kingsley, Ekwemalor & Kelly, Chege, 2018. "Exploring the Consumer welfare effects of MCOOL," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266706, Southern Agricultural Economics Association.
    4. Jongeneel, Roel & Baltussen, Willy H.M., 2014. "Analyzing the impacts of mandatory country of origin labeling in EU pork and poultry sectors on markets, cost of production and trade," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182688, European Association of Agricultural Economists.
    5. Yeboah, Osei & Naanwaab, Cephas & Shaik, Saleem & Legesse, Befikadu & Odom, Phillipa, 2017. "Is Mandatory Country of Origin Labeling a Proxy for Import Quota: A Partial Equilibrium Analysis of U.S Beef Imports?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252807, Southern Agricultural Economics Association.

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